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Nersa to announce decision on Eskom tariff hike today

Big business, the mining sector and civil society groups are strongly opposed to a tariff increase.

Nersa Chairperson Jacob Modise announces decision to decline electricity price increase request. Reinart Toerien/EWN.

JOHANNESBURG - The National Energy Regulator of South Africa (Nersa) will announce this afternoon whether or not it's approved Eskom's application for a 16.6 percent tariff hike.

Public hearings were held across the country earlier this year.

Big business, the mining sector and civil society groups are strongly opposed to a tariff increase.

But the utility said it needs to recover R22.8 billion.

The National Energy Regulator was expected to make the announcement on Eskom's application last week, but said it needed to verify more information.

Eskom maintains that it has put forward a strong case, saying it needs funds in order to recover R22.8 billion but there's a strong counter-argument that an electricity price hike will have a detrimental effect on consumers and business.

The Chamber of Mines has warned that 40,000 jobs could be lost if Eskom's application is approved.

Many organisations have questioned Eskom's use of the Open Cycle gas turbines, saying diesel costs are too high and if this application is approved the utility may want to clawback again in the future.

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